New orders driven by overseas demand spurs manufacturing sector

Manufacturing activities in India is on the rise, according to a private sector survey. The Nikkei India Purchasing Managers’ Index report shows manufacturing grew at its strongest pace since December 2017 in June on the back of sharp gains in output and new orders.

Reflecting greater production requirements, firms were encouraged to engage in purchasing activities and raise their staffing levels the report said, adding “favourable demand conditions has caused output growth across all market groups.”

The report also attributed the growth to continual demand from overseas. “For the 8th consecutive month, new orders from overseas rose,” the report stated.

The need for increased output has lead to an increase of jobs. Aashna Dodhia, Economist at IHS Markit and author of the report said, “survey data pointed to a healthy labour market, with job creation accelerating to its sharpest since December 2017.” However, she went on to add, “business sentiment eased to the weakest since last October during June. This partly reflects concerns of a potential market slowdown in the year ahead.”